504.834  Loans to or guarantees for directors and officers.
  1.  A corporation shall not lend money to or guarantee the obligation of a director or officer of the corporation.
  2.  This section does not apply to the situation where the director or officer is a full-time employee of the corporation and involves any of the following:
  a.  An advance to pay reimbursable expenses reasonably expected to be incurred by a director or officer.
  b.  An advance to pay premiums on a policy of life insurance if the advance is secured by the policy’s death benefit proceeds or cash surrender value, or both.
  c.  Advances pursuant to part 5 of this subchapter.
  d.  Loans or advances pursuant to employee benefit plans.
  e.  A loan secured by the principal residence of an officer.
  f.  A loan to pay relocation expenses of an officer.
  3.  The fact that a loan or guarantee is made in violation of this section does not affect the borrower’s liability on the loan.
2004 Acts, ch 1049, §93, 192; 2015 Acts, ch 45, §10; 2016 Acts, ch 1073, §141